Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2021

Intangible Assets and Goodwill

Intangible Assets and Goodwill

6. Intangible Assets and Goodwill

The following table provides the components of the Company’s intangible assets (in thousands, except weighted average amortization period in years):

	Weighted
	Average	As of June 30, 2021						As of December 31, 2020
	Amortization	Initial		Accumulated		Net		Initial		Accumulated		Net
	Period	Cost		Amortization		Balance		Cost		Amortization		Balance
Franchise agreements	12.6	$	180,867	$	(116,372)	$	64,495	$	180,867	$	(108,671)	$	72,196
Other intangible assets:
Software (a)	4.4	$	47,301	$	(24,327)	$	22,974	$	44,389	$	(18,926)	$	25,463
Trademarks	8.4		2,350		(1,406)		944		2,325		(1,274)		1,051
Non-compete agreements	5.1		3,920		(3,339)		581		3,920		(2,814)		1,106
Training materials	5.0		2,400		(1,360)		1,040		2,400		(1,120)		1,280
Other	5.3		1,670		(794)		876		1,670		(601)		1,069
Total other intangible assets	4.6	$	57,641	$	(31,226)	$	26,415	$	54,704	$	(24,735)	$	29,969

(a) As of June 30, 2021 and December 31, 2020, capitalized software development costs of $2.2 million and $1.4 million, respectively, were related to technology projects not yet complete and ready for their intended use and thus were not subject to amortization.

Amortization expense was $6.5 million and $6.0 million for the three months ended June 30, 2021 and 2020, respectively. Amortization expense was $12.9 million and $11.8 million for the six months ended June 30, 2021 and 2020, respectively.

The estimated future amortization expense related to intangible assets includes the estimated amortization expense associated with the Company’s intangible assets assumed with the Company’s acquisitions (in thousands):

As of June 30, 2021
Remainder of 2021	$	13,005
2022		23,642
2023		17,995
2024		14,615
2025		10,167
Thereafter		11,486
	$	90,910

The following table presents changes to goodwill by reportable segment (in thousands):

	Real Estate		Mortgage		Total
Balance, January 1, 2021	$	157,202	$	18,633	$	175,835
Purchase price adjustments		133		—		133
Effect of changes in foreign currency exchange rates		93		—		93
Balance, June 30, 2021	$	157,428	$	18,633	$	176,061